GOVERNMENT plans to take regional factors into account when settling national pay claims could trigger a nationwide strike, claims a union boss.

Transport and General Workers Union deputy general secretary Jack Dromey said the move towards local pay conditions could "impoverish" workers outside the south east.

But Chancellor Gordon Brown, who announced the move in the Budget, dismissed Mr Dromey's threats of a second national dispute strike after the fire strike.

Dimension

In his Budget speech, Mr Brown said the government wanted to plan regional price indexes showing differences in inflation rates in different areas so pay reviews would include a stronger regional dimension.

Mr Dromey said Mr Brown must rule out ending national bargaining and local government employers must not take advantage of the Chancellor's statement to end national bargaining.

He said: "If they do, inevitably we'll end up with a second national strike within 12-months.

"There must not be an end to national pay bargaining. The Chancellor has set alarm bells ringing and workers outside London will be horrified if it means they will be impoverished."

Mr Brown said today: "There will continue to be national pay bargaining."